Liberals Push Ahead with ZEV Mandate Amid Declining Sales and Political Criticism

What the Future Holds for Electric Vehicles in Canada’s Changing Auto Market

OTTAWA – December 12, 2025 – The Liberal government’s electric vehicle (EV) strategy is drawing fire from critics as recent data shows a significant year-over-year decline in zero-emission vehicle (ZEV) sales across Canada. While the federal government pushes forward with its ZEV mandate and subsidy programs, opposition voices—particularly from the Conservative Party—argue the policy is out of step with consumer demand and economic priorities.

What Is the Liberal ZEV Policy?

The Liberals have committed to a 100% ZEV sales mandate for new light-duty vehicles by 2035, with interim targets including 20% by 2026 and 60% by 2030. This is backed by significant public investment, including:

• Federal rebates of up to $5,000 per EV through the iZEV Program

• Incentives for businesses and public entities to purchase EVs

• Millions invested in charging infrastructure, even at large private sector sites

• Training initiatives, such as the recently announced $2.5 million program to support EV-related education and employment

These policies aim to reduce emissions, support EV supply chains, and transition Canada’s auto sector toward a low-carbon future.

Opposition Pushback: “Canadians Aren’t Buying It”

Raquel Dancho, the Conservative Shadow Minister for Industry, voiced sharp criticism of the latest ZEV-related spending, highlighting that only 8.9% of new vehicles sold in October 2025 were ZEVs—a 42% drop compared to the same period last year.

In a media statement, Dancho took aim at the Liberals’ funding for EV training programs and corporate partnerships, stating:

“It’s time to end corporate welfare and put Canadians back in the driver’s seat. Conservatives trust Canadians—not Ottawa’s Liberal elite—to make the best decisions for themselves and their families.”

She also criticized the lack of follow-up on a promised 60-day review of the ZEV mandate, first announced by Minister Evan Solomon in September, which has yet to produce an update nearly 100 days later.

EV Growth in Canada: Still a Road to Build

Despite the political tensions, the potential for electric vehicles in Canada remains considerable:

• Public demand is regional, with stronger sales in urban centers like Toronto, Vancouver, and Montreal, where charging infrastructure and environmental awareness are higher.

• Rural and northern communities, including those in Northwestern Ontario, face more barriers—including charging access, cost, and vehicle range concerns.

• Automakers are adapting, with Canadian production of EVs set to rise thanks to investments from companies like Stellantis, Honda, and Volkswagen.

Thunder Bay and Northern Ontario could benefit from strategic EV investments if infrastructure expansion aligns with regional needs. Mining and critical mineral development, both key to EV battery production, offer potential economic growth for the North, but local support for ZEV ownership remains cautious.

Looking Ahead: A Divided Path

The ZEV debate touches on core questions:

• Should government steer the transition to clean transportation through mandates and subsidies?

• Or should the market and consumers decide the pace of change?

As the 2025 political landscape heats up, electric vehicles are becoming not just a transportation issue, but a flashpoint in the broader conversation about economic priorities, climate policy, and the role of government in shaping Canada’s future.

The Last Word:
Liberal ZEV policy faces criticism as EV sales drop and political tensions rise over federal spending.